The Master Development And Supply Agreement is a critical commercial contract used when parties wish to establish a long-term relationship involving both product development and subsequent supply arrangements. This agreement is particularly relevant in Canadian business contexts where one party engages another to develop specific products or technologies and then supply them on an ongoing basis. The document comprehensively addresses both the development phase (including specifications, timelines, and acceptance criteria) and the supply phase (including ordering processes, quality requirements, and pricing mechanisms). It incorporates necessary protections under Canadian federal and provincial laws, particularly regarding intellectual property rights, commercial terms, and quality standards. This type of agreement is commonly used in manufacturing, technology, and innovation-driven sectors where ongoing collaboration between developer/supplier and customer is essential for success.
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1. Parties: Identification of the contracting parties, including full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and high-level objectives
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Development Services: Scope of development work, deliverables, timelines, and acceptance criteria
5. Supply Obligations: Terms governing the supply of products, including forecasting, ordering, and delivery
6. Quality Requirements: Quality standards, specifications, and quality control procedures
7. Intellectual Property Rights: Ownership and licensing of IP, including background IP and newly developed IP
8. Pricing and Payment: Price determination, payment terms, and price adjustment mechanisms
9. Term and Termination: Duration of agreement, renewal provisions, and termination rights
10. Warranties and Indemnities: Product warranties, service warranties, and indemnification obligations
11. Confidentiality: Protection of confidential information and trade secrets
12. Force Majeure: Events excusing performance and related procedures
13. Dispute Resolution: Process for resolving disputes, including escalation procedures
14. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Exclusivity: Used when parties agree to exclusive development or supply arrangements
2. Minimum Purchase Commitments: Include when buyer commits to minimum purchase volumes
3. Technology Transfer: Required when specific technology transfer obligations exist
4. Manufacturing Change Control: Include for products requiring strict change control procedures
5. Regulatory Compliance: Important for regulated industries like medical devices or pharmaceuticals
6. Environmental Compliance: Relevant when environmental standards are critical
7. Insurance Requirements: Detailed insurance obligations beyond standard coverage
8. Source Code Escrow: Required when software development is involved
9. Business Continuity: Important for critical supply relationships
10. Export Control: Necessary for international trade or controlled goods
1. Product Specifications: Detailed technical specifications of products
2. Development Milestones: Specific development phases, deliverables, and timelines
3. Pricing Schedule: Detailed pricing information, including volume discounts and price adjustment mechanisms
4. Quality Requirements: Detailed quality standards, testing procedures, and acceptance criteria
5. Service Levels: Performance metrics and service level requirements
6. Approved Manufacturing Facilities: List of approved manufacturing locations and subcontractors
7. Key Personnel: List of key personnel involved in development and their roles
8. Form of Purchase Order: Standard form for placing orders under the agreement
9. Acceptance Test Procedures: Detailed procedures for testing and accepting deliverables
10. Change Control Procedures: Processes for managing changes to specifications or manufacturing
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Automotive
Electronics
Pharmaceuticals
Medical Devices
Aerospace
Industrial Equipment
Consumer Goods
Telecommunications
Software Development
Biotechnology
Clean Technology
Defense
Relevant Teams
Legal
Procurement
Supply Chain
Research and Development
Product Development
Quality Assurance
Operations
Commercial
Business Development
Manufacturing
Project Management
Technical
Intellectual Property
Sourcing
Relevant Roles
Chief Executive Officer
Chief Technology Officer
Chief Operating Officer
Procurement Manager
Supply Chain Director
Research and Development Director
Legal Counsel
Contract Manager
Product Development Manager
Quality Assurance Manager
Commercial Director
Business Development Manager
Operations Manager
Technical Director
Manufacturing Manager
Project Manager
Intellectual Property Manager
Sourcing Manager
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